Bank of America's Q4 Revenue Dips 10%; CFO Highlights Organic Growth, 4.6M Credit Card Accounts Addition
Portfolio Pulse from Anusuya Lahiri
Bank of America Corp (NYSE:BAC) reported a Q4 FY23 adjusted net income of $5.9 billion with an EPS of $0.70, surpassing the consensus of $0.68. However, revenue fell 10% Y/Y to $22.0 billion, missing the consensus of $23.7 billion. The bank saw a decrease in Consumer Banking and Global Wealth and Investment Management income, but an increase in Global Markets. Net interest income dropped due to higher deposit costs and lower deposit balances, while noninterest income also declined. The bank added 4.6 million credit card accounts in 2023, indicating organic growth. BAC shares dropped 2.29% in premarket trading.
January 12, 2024 | 1:55 pm
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Bank of America's Q4 revenue declined and missed estimates, but EPS beat expectations. The bank added 4.6 million credit card accounts, signaling growth. Shares fell 2.29% premarket.
The revenue miss and overall decline in net income are likely to negatively impact investor sentiment in the short term, despite the EPS beat and organic growth indicated by new credit card accounts. The premarket share price decline reflects immediate investor reaction.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100